A TRUSTED INDEPENDENT HEALTH INSURANCE GUIDE SINCE 1999.
Call our agency partners 866-553-3223
Call our agency partners 866-553-3223

Medicare & Medicaid

Medicare & Medicaid

Featured

Featured
ACA open enrollment: what’s new for 2025
Open enrollment for 2025 ACA (Affordable Care Act)-compliant health insurance is just around the corner. Let’s take a look at the various changes that consumers should be aware of this fall.

Featured

Featured
Fact check: Is the $6,400 subsidy real?
Ads on social media – promising a $6,400 subsidy – have been flagged as misleading. Here's what you need to know about the $6,400 subsidy scam.

voluntary accident insurance

What is voluntary accident insurance?

healthinsurance.org health insurance glossary

What is voluntary accident insurance?

Voluntary accident insurance refers to supplemental accident coverage (aka, an accident supplement) in which benefits are offered by an employer but paid for by employees, via payroll deduction.

If employees wish to enroll in the coverage, the premiums are deducted from their paychecks. Group rates for accident supplements make the coverage more affordable than it would be if each employee had to purchase an individual plan.

aflac_supplemental_ad

Note that there’s a common misconception that “group rates” are always lower than individual rates. That’s not always the case, especially for major medical health insurance, where the full cost for group coverage is comparable to the cost of individual coverage, but mostly funded by employers.1

However, supplemental benefits such as accident coverage, dental coverage, and disability coverage, are generally less expensive if obtained on a voluntary basis via payroll deduction, versus what they would cost if employees purchased them privately on their own.

Workplace accidents are covered under workers’ compensation insurance, but accidents that occur when employees are not at work would be covered by a voluntary accident insurance plan. The accident insurance would help to cover the out-of-pocket costs associated with the employee’s medical insurance plan (deductible and coinsurance) that the employee would otherwise have to pay. Employees who are offered voluntary accident coverage typically have the option to add their spouse and dependents to the plan.

Voluntary accident insurance will typically have a maximum dollar limit that it will pay. And many plans will also have maximum benefit caps that apply to specific services, such as ER visits, urgent care visits, stitches, surgery, etc. If a covered member receives medical treatment for an accident or injury, they use their major medical coverage and then submit proof of their out-of-pocket costs to the accident plan for reimbursement, up to the applicable plan maximums.

Footnotes

  1. Employer Health Benefits, 2024 Annual Survey” KFF. Oct. 9, 2024. 
sticky-bottom-cta

Get your free quote now through licensed agency partners!